Current Report: Brady Corp

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Brady Corp, known by the ticker symbol BRC, is a mid-cap security and protection services company, operating in the industrial business sector in Wisconsin. This is my second report on Brady Corp for this Viital portfolio, I last reported about this company on March 15.

Brady Corp provides identification solutions and workplace safety products. The company offers identification and healthcare products that are sold under the Brady brand to maintenance, repair, and operations as well as original equipment manufacturing customers. 

Products include safety signs and labeling systems, material identification systems, wire identification, patient identification, and people identification. Brady also provides workplace safety and compliance products such as safety and compliance signs, asset tracking labels, and first-aid products. 

The largest end market is the United States.

Its products also comprise name tags, badges, lanyards, rigid card printing systems, access control software for people identification; wristbands and labels for tracking and enhancing the safety of patients; and custom wristbands. This segment serves customers in various industries, such as industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and others through distributors, direct sales, catalog marketing, and digital channels

 It also offers stock and custom identification products, as well as sells related resale products. 

Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.

Three key data points gauge any dividend equity or fund such as Brady Corp (BRC)

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

BRC Price

Brady’s price per share was $45.66 as of yesterday's market close. One year ago its price was $55.59. Therefore, Brady’s share price fell $9.93 or about 17.9% in the past year. 

If Brady’s stock trades in the range of $40.00 to $60.00 this next year, its recent $45.66 share price might rise by $9.34 to reach $55.00 by May 3, 2023. My $9.34 upside estimate is $7.75 less than the median of price upside gauged by four analysts tracking BRC for their brokerages.

BRC Dividends 

Brady’s most recently declared a quarterly dividend of $0.225 was paid on April 29th to shareholders on record as of April 7th.  

Brady Corp started its quarterly dividend on October 31, 1986. The dividend has increased steadily from $0.01 to $0.225 in 1986 and 2022. At its recent annual rate, BRC’s annual payout of $0.90 is estimated to deliver a 1.97% annual yield per yesterday’s $45.66 share price.

BRC Returns

Adding the $0.90 BRC annual dividend to the estimated one-year price upside of $9.34 shows a $10.24 potential gross gain, per share, to be reduced by any costs to trade BRC shares.  

At yesterday's $45.66 closing price per share, a little over $1000 would buy 22 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.45 per share.

Subtract that maybe $0.45 brokerage cost from my estimated $10.24 gross gain estimate per share results in a net gain of $9.79 X 22 shares = $215.38 for a 21.5% net gain on a $1,002.32 investment.

So is that Brady Corp (BRC) shows a possible 21.5% net gain including a 1.97% forward-looking dividend yield. 

Over the next year at this time, our $1000 investment in BRC shares could generate $19.70 in cash dividends alone. Note that a single share of BRC stock bought at yesterday's $45.66 price is about 2.5 times greater than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this is no time to buy BRC shares based on their declared dividends for the year 2022. The forthcoming annual dividend from $1K invested is currently 2.318 times less than yesterday's single share price. Consider yourself alerted. It's a sign. Do not buy BRC stock for dividend until the price drops to $30.00 or its Q dividend is increased to $0.52 per share.

All of the estimates above are speculation based on the past history of Brady Corp (BRC). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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